The Federal Reserve's anticipated rate cut in September has sparked investor enthusiasm, but recent inflation data adds complexity to the outlook. While consumer inflation appeared moderate, producer prices surged unexpectedly,

Futures markets are also expecting a rate cut. Investors peg the chances of a quarter-point interest rate cut at nearly 96%, according to the CME FedWatch Tool, a measure of market sentiment.

Gold extended gains to a third straight session on Thursday, supported by rising expectations of an interest rate cut by the U.S. Federal Reserve in September following tame inflation data, which also weighed on the dollar.